BTC/USD
Bitcoin markets fell yet again during the Tuesday session as volume picked up. We have sliced through the $12,000 level, which of course is a very negative sign. By doing so, it looks as if we are going to approach the $10,000 level next, and based upon the volume and the closing of the candle, I think were going to go below there as well. Bitcoin seems to be destined to reaching much lower levels, perhaps 8000, and some models that I use are starting to suggest 6000 being more likely. If you have the ability to short Bitcoin, rallies have been excellent opportunities to do so. However, I think that if we get some type of support underneath, I’d be willing to take a flyer. However, you would need to see a couple of days of stability first before putting any type of money to work.
BTC/JPY
If Bitcoin looks like it’s struggling a bit against the US dollar, it's getting absolutely crushed against the Japanese yen. At this point, I see nothing stopping the market from dropping down to the ¥1 million level, and I’m now starting to think that ¥800,000 might be likely as well. The volume was decent on Tuesday, much higher than it has been in several weeks, and the market closing at the very bottom of the range for the day is an extraordinarily negative sign. Because of this, I think the Bitcoin is going to be in trouble for the next several days, and then possibly try to find some type of footing underneath to turn around and offer value. Right now, unless you have the ability to short this market, you have no business having money in the markets as they look extraordinarily damaged. The crypto currency rally is all but dead.
